Sohar International

ESG

Environment Social and Governance (ESG) at Sohar International

At Sohar International, our commitment to business sustainability guides every strategic decision as we grow beyond local markets and strengthen our international presence. We define sustainability as; the most efficient and responsible use of all resources including financial, human, technological, and natural, to create long-term value for all stakeholders.

Central to this vision is our robust Environmental, Social, and Governance (ESG) framework. We’re proud to be the first bank in Oman to establish a dedicated ESG function, reflecting our leadership in sustainable investments and financing.

We actively support sustainable investments by channelling capital toward projects that drive positive environmental and social outcomes as well as commercially feasible through various funding options such as green funds, clean energy financing, socially responsible lending, or ESG-aligned asset management. Our goal is to enable inclusive economic development while reducing risk and unlocking growth opportunities in emerging sustainable sectors.

By embedding ESG into our banking model, Sohar International empowers individuals, businesses, and communities to thrive in a changing world, locally and globally.

A Message from our CEO

At Sohar International ESG is not just a commitment but a continuous journey towards creating lasting value for the economy, environment, our people and customers, and the communities across where we operate. As we move forward, ESG will continue to be central to our strategy, driving sustainable growth and positioning Sohar International as a leader in sustainable finance and responsible banking, across Oman and beyond. Together, we are paving the way for a more inclusive and resilient tomorrow.

Sohar International

At Sohar International ESG is not just a commitment but a continuous journey towards creating lasting value for the economy, environment, our people and customers, and the communities across where we operate. As we move forward, ESG will continue to be central to our strategy, driving sustainable growth and positioning Sohar International as a leader in sustainable finance and responsible banking, across Oman and beyond. Together, we are paving the way for a more inclusive and resilient tomorrow.

Abdul Wahid Al Murshidi

Chief Executive Officer, Sohar International

Sohar International’s ESG Approach

Our ESG Approach is underpinned by the Bank’s ESG Framework which maps out how sustainability is woven into our strategy and business. The Framework was developed to focus on the most critical ESG issues for the Bank, our stakeholders, and the impact of these ESG issues (both inward and outward impacts) – double ESG materiality. This dynamic approach draws insights from both within the Bank and from the external stakeholders to ensure we remain responsive to market trends and stakeholder expectations.

The ESG Framework was approved by the Board in 2023 and is outlined in the following chart.

Sohar International
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Enabling the transition to a sustainable future

  • Sustainable Finance and Investment (Decarbonisation, NetZero, Biodiversity, and Natural Capital)
  • Direct environmental footprint (Energy, Waste, and Water management)
Sohar international

Embedding responsible business operations

  • Governance, Compliance and Ethics (Culture, AML and Anti-corruption, Transparency, Financial performance)
  • Sustainable Supply Chain / Procurement
  • E and S risk management (ESRM)
  • Digital Leadership
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Empowering and developing people – employees, customers and communities

  • Human Capital (Employee Health Safety; Wellbeing; Diversity and Inclusion; Talent Attraction; Engagement and Retention; Training and Development)
  • Customer protection (Privacy and Security; Responsible Communications / Marketing)
  • Financial inclusion, accessibility and education (financial wellbeing)
  • Community investment and socio-economic development (CSR)
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Plan, Monitor, Report

  • ESG Framework Review
  • ESG Materiality
  • ESG Management System
  • ESG Monitoring and Reporting

The ESG Framework maps out how ESG is woven into every part of our operations, zooming in on the most material ESG issues. Our ESG Framework is living and breathing and will evolve as market dynamics shift and stakeholder needs change.

As we advance, ESG will continue to be at the heart of our corporate strategy, driving us toward sustainable growth and positioning Sohar International as a sustainability leader in banking in Oman and beyond.

Sohar International has made great strides in relation to ESG integration, but we recognize we have a long way to go – we will continue our efforts to mainstream ESG.

 

ESG Governance

The Sultanate of Oman is advancing towards a more sustainable future.  It has embedded sustainability within its Oman Vision 2040, and in 2022 announced its commitment to reaching NetZero Emissions by 2050.

Foreseeing this focus, Sohar International were first movers in establishing an ESG function (and until today is the only Bank with a Head of ESG).  This was in recognition of the critical role the Bank (and the financial services sector) can play in enabling and supporting the Sultanate’s commitment to sustainable and inclusive economic development.

The ESG Function has been granted the highest level of accountability of the function, reporting directly to the Chief Executive, and indirectly to the Board of Directors through the Executive, Nomination and Remuneration Committee.

The ESG Function at Sohar International is tasked with developing and implementing ESG across the Bank.

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ESG Case studies

 

Case Study #1

Driving Financial Literacy across Oman

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Case Study #2

ESO’s Oman Climate Dialogues – Exploring sustainable finance and investment

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